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  • Helping people achieve a lifetime of financial security

    Accelerating execution of strategy

    Mark Mullin New York City – December 8, 2016

    CEO of the Americas

    Member of the Aegon Management Board

  • 2

    Key messages

    • Capital generation of ~USD 1 billion per annum, with growth after 2018

    • Strong delivery on expense savings target; doubling 2018 target to USD 300 million

    • Achieve return on capital of 9% by 2018

    • 5 part plan in place to accelerate pace and exceed expectations

    Reaffirming

    2018 targets

    • On track to deliver original 2018 expense target of USD 150 million in 2017

    • Further net reduction of >500 roles announced

    • First phase of location strategy implemented – impacting 3 locations

    • Strategic decision to close Affinity, Direct TV and Direct Mail channels

    Robust

    management

    actions

    • Well positioned for market opportunities with a clear view of our portfolio

    • Integrated worksite strategy leverages market-leading capabilities

    • Delivering an innovative, digital front-end for retirement plans and employee benefits

    • Investing in talent and skills to deliver a flexible, digital capability for the future

    Positioned for

    the future

  • 3Delivering on 2018 targets

    Source: Swiss Re sigma; Census; US Bureau of Economic Analysis

    Strategically positioned to capture opportunities

    A significant and growing marketplace

    >$500bn Largest insurance

    market in the world

    325m Affluent and

    aging population

    ~6% Personal

    savings rate

    Well positioned franchise

    Integrated worksite strategy

    leverages market leading capabilities

    Delivering an innovative, digital front-end for retirement plan and employee benefit customers

    • Leading wealth & health businesses

    • Offering attractive products across

    channels

    • Iconic and well respected brand

  • 4Delivering on 2018 targets

    Optimizing position by seeking opportunities

    Managing an evolving landscape

    Lower for longer rates DOL Fiduciary Rules

    • Fiduciary rules

    • Transparency

    • Consumer protection

    • Management actions to reduce exposure

    • New approach reduces hedging volatility

    • Additional action on expense base to strengthen path to

    achieving targets

    • On track for April 1, 2017 implementation

    • New fee-based products launched

    • Working with key distributors to strengthen relationships as they transition

    • Deepening and expanding retirement plan offerings for participants with Managed

    Advice

    Customer & Technology

    • Demographics drive strong need

    • Behaviors changing

    • Technology enabling new solutions

    • Innovative and integrated offering for the worksite

    • Enabled by leading-edge technologies

    • Driving operational efficiencies across the organization

    • Low interest rates

    • Equity volatility

    • Challenging tradition

  • 5Delivering on 2018 targets

    Accelerating pace and scale of delivery

    Committed to our strategic objectives

    • Provide omni-channel, mobile-first

    experiences to engage

    directly with customers

    • Create solutions that are convenient,

    rewarding and relevant

    • Allocate capital to businesses that fit our

    strategic direction and

    create profitable growth

    • Optimize value of back books

    • Invest in capabilities and expertise to support our ambitions

    • Advocate accountability, agility and customer centricity

    • Reduce complexity, drive consistency and decrease costs

    • Create a positive and meaningful experience for users, promoting

    strong relationships

  • 6Delivering on 2018 targets

    Management team committed to deliver

    Clear 5 part plan to optimize performance

    1

    2

    3

    4

    5

    David Hopewell Chief Product Officer

    Dave Paulsen Chief Distribution Officer

    David Macmillan Chief Marketing Officer

    Gerard Rescigno Chief Technology Officer

    Blake Bostwick Chief Operations Officer

    Todd Fuhs Chief Risk Officer

    Eoin Elliffe Head of ALM & Hedging

    Today’s breakout sessions

    In-force management Starting with Life & Health

    Location strategy Reduced US geographical

    footprint

    Efficient organization Focused and disciplined expense

    management

    Optimizing the portfolio Disposition of non-core assets

    New business & revenue Strategic overhaul of product

    offerings & channel positioning

  • 7

    • Successful execution of expense savings

    • Optimizing capital and improving returns – Increasing monthly deduction rates on certain

    Universal Life insurance blocks to remain below

    maximum rate guarantees

    – Requesting Long Term Care rate increases

    – Assessing all Life & Health blocks to identify opportunities to improve returns on in-force

    • Actively developing new solutions to

    engage with existing customers – Using Managed Advice to improve the

    experience of Retirement Plan participants and

    expand revenue generating opportunities

    Delivering on 2018 targets

    Starting with Life & Health

    1. In-force management

    In-force

    management

    Expense

    savings

    Capital

    optimization

    Liability

    management

    Risk

    transfer

    Retention

    Asset

    allocation

  • 8Delivering on 2018 targets

    * Enterprise Marketing & Analytics Platform – incorporating internal and external data sources to drive insight on customer value & journeys

    Engaging employers and participants to drive value with digital technology

    2. New business and revenue - Worksite

    • Strong existing presence - > 6 million participants and > 40,000 employers

    • Integrated worksite offering combining wealth, health & advice

    • Engaging digital interface for employers, participants and advisers

    • Mobile-first technology to enable cross-selling as we get closer to

    customers

    • Enables efficient journey by straight- through processing

    Leveraging our position

    & new technologies

    Employer

    Participant

    Adviser Retirement

    Savings

    Life & Health

    Advice &

    guidance

    Funds

    Stable Value

    Solutions

    Best of Breed

    external partners

    Digital first &

    straight-through

    processing

    Selected

    partners

    Integrated

    Digital

    Worksite

    PlatformIn-house

  • 9Delivering on 2018 targets

    Source: 1) Chatham Partners 2) LIMRA 3) SPARK

    Competitive advantages at the worksite

    Significant growth opportunities

    2%

    3%

    4%

    5%

    0

    1,500

    3,000

    4,500

    6,000

    7,500

    2011 2013 2015

    Voluntary sales (lhs) Market share (rhs)

    (Assets USD million, % of sales)

    Employee Benefits2

    USD 7 billion market

    • Double market growth and fastest- growing amongst top 10

    • Broad portfolio of market leading life and health products

    Health

    (Assets USD billion, % of assets)

    Defined Contributions (DC)1

    USD 7 trillion market

    • Growing 4 times faster than industry

    • Strong competitive position in all sized plans post Mercer acquisition

    0%

    2%

    4%

    6%

    2011 2013 2015

    0

    2,000

    4,000

    6,000

    8,000

    DC (lhs) Market share (rhs)

    Wealth

    0%

    10%

    20%

    30%

    2011 2013 2015

    0

    2,000

    4,000

    6,000

    8,000

    IRA (lhs) Retention rate (rhs)

    (Assets USD billion, % of rollovers)

    Individual Retirement Accounts3

    USD 8 trillion market

    • Increased retention rate to 19%

    • Extending Advice Center capability for participants

    Advice

  • 10

    0

    50

    100

    150

    200

    250

    Universal Term Whole

    Closely affiliated Brokerage Worksite Other

    * Source: LIMRA for nine months 2016

    Delivering on 2018 targets

    Significant potential to provide Life products to middle America

    Opportunities in Life

    Market leading positions* Positioned to capture growth

    • Reaching fast growing portions of middle market via World Financial Group, the dominant channel for Transamerica’s IUL sales

    • Growing life sales at the worksite at more than three times the industry rate*

    • New product offerings to enhance competitive position in the brokerage channel

    #2 Indexed Universal Life Individual

    Term Life

    11% market share

    #5 5%market share

    Individual

    Whole Life #9 3%market share

    Overall

    Individual Life #6 5%market share

    Diverse product & distribution mix

    (USD million)

    Transamer

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